Marketing 1 Chapter 3 Review

economy
The organized way a nation provides for the needs and wants of its people.
resources
All the things used in producing goods, and services.
factors of production
Land, Labor, Capital, and Entrepreneurship.
infrastructure
The physical development of a country.
entrepreneurship
Refers to the skills of people are willing to invest their time, and money to run a business
scarcity
The difference between needs & wants, and resources.
traditional economy
Economy based on cultural, religious practices, and ideas.

Example(s): Parts of Africa, Southern Mexico

market economy
Economy that has no government in economic decisions.

Example(s): United States, Canada, UK, Germany

command economy
Economy in which the government makes the economic decisions.

Example(s): PRC, USSR, PRNK, Iran, Cuba

productivity
Output per worker hour
GDP- Gross Domestic Product
Output of goods, and services produced by labor, and property located within a country

The ____ in the US is $15.68 trillion

GNP- Gross National Product
The total dollar value of goods, and services produced by a nation.

The ____ in the US is $14.265 trillion

inflation
Refers to rising prices

A low inflation rate is 1% to 5% a year.

CPI- Consumer Price Index
Measures the change in price over a period of time of some 400 specific retail goods, and services used by the average urban household.

The ____ in the US for the month of August 2013 was at 0.1%

PPI- Producer Price Index
Measures wholesale price levels in the economy.

The ____ in the US during 2011 was 0.005/100 for pears.

business cycle
Recurring changes in economic activity. Which include: expansion, recession, trough, and recovery.
expansion
A time when the economy is awesomeness. With low unemployement, and high consumer spending.

Example years: 1991-2007

recession
A period of economic slow down that lasts at least 2 quarters.

Example years: 2007-2009

depression
Similar to a recession, but it is worse. It becomes nearly impossible to find a job, and many businesses are forced to shut down.

Example years: 1929-1933

recovery
A period of renewed economic growth.
approach
A way of doing something.
theory
A hypothesis that has been tested with a significant amount of data.
invest
In economics, spending for the production and accumulation of capital and additions to inventories
method
A defined, repeatable approach to address a particular type of problem.